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Canon, Biggest Contender for Toshiba Medical Unit, Offers $6.2 Billion

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March 9
2:43 AM 2016

Canon Inc. is expecting to win the bid for Toshiba Corporation's medical unit with an exceptional proposal of 700 billion yen.  The said offer surpassed the bid from Fujifilm Holdings Corp. and a grouping of Konica Minolta Inc. and Permira Holdings.  Toshiba is considering the three proposals laid out on Wednesday at a board meeting.

Toshiba is liquidating its assets to help pay for the bad effect of the largest accounting disgrace in its 140-year history that incite depreciation and exiting of executives.  President Masashi Muromachi lay off jobs, selling its medical unit and planning a restructuring of its PC and TV operations as the company reported a record loss for the fiscal year that ends March 31.

The public sale of Toshiba Medical Systems Corporation, constitute an unexpected occasion for competitors to take over on a respected producer of diagnostic equipment including X-ray and magnetic resonance imaging systems. The bidder who wins on the second round bidding held on Friday will be manifested on Wednesday, Reuters report.

Toshiba Medical Systems is Japan's biggest medical equipment company.  It manufactures diagnostic imaging system such as MRI, ultrasound equipment and X-ray.  The health care department along with medical equipment and other business that Toshiba doesn't consider to sell had sales of ¥409.5 billion in a year that ended March 2015 with an operating income of ¥23.9 billion, according to Blomberg's compiled data.

On the other news, ADRs of Canon were sliding on Tuesday morning after a unit of Canon USA, Canon BioMedical, has launched five news assays to give assistance on the research regarding inherited diseases affecting individuals of Ashkenazi Jewish heritage.  Almost 25% of Ashkenazi Jewish heritage is noted by Canon BioMedical as carriers of conditions like Gaucher disease, Canavan disease or Tay-Sachs disease in their DNA, reports Sonoran Weekly Review.

Canon Inc. produces and sells office multifunction devices, laser printers, cameras and lithography equipment among others.  The firm operates in three segments namely: Imaging System Business Unit, Office Business Unit and Industry and Others Business Unit. 

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